Product designers at Great American Life Insurance Company looked at recent stock market performance and decided consumers might be in the mood for a plain vanilla annuity.
The Great American Insurance Group unit has introduced the American Freedom Classic 3 contract, a multi-year guaranteed annuity (MYGA) contract with a fixed interest rate that’s guaranteed to stay the same for three years.
(Related: Great-American Adds Variable Indexed Annuity)
If a consumer decides to renew the annuity at the end of the first three-year term, Great American Life will then set a new interest rate and guarantee to pay that rate throughout a second three-year term, Great American Life says.
Dave Mebius, national accounts director at the Cincinnati-based company, said in a statement about the product that market volatility has created a need for products with rates that stay fixed over a relatively short term.